The chapter 11 cases of Gawker Media, LLC and its debtor affiliates have given the bankruptcy vultures everything they could ever hope for in one case – celebrity, scandal, a cameo by the First Amendmen

The Bankruptcy Code’s priority scheme provides that the shareholders generally cannot receive anything on account of their investment until all secured, priority and unsecured creditors are paid in full.

Who doesn’t love a good catch-all provision? In a world of infinite possibilities, attorneys often find themselves drafting language designed to encompass a plethora of contingencies. Are such efforts sometimes overkill? Perhaps. Nevertheless, given our imperfect ability to predict the future, such provisions are often necessary and appropriate.

When Can a Subsidiary Be Liable for the Actions of Its Owners?

Gary Ozenne seems to love bankruptcy court.  To wit, Mr. Ozenne filed, on his own behalf, seven bankruptcy cases over the course of five years.  Mr. Ozenne has three times petitioned the United States Supreme Court, on each occasion seeking bankruptcy-related relief.  Unfortunately for Mr.

“We’re riding down the boulevard,
We’re riding through the dark night,
With half the tank and empty heart,
Pretending we’re in love, when it’s never enough, nah.”

Determining how to increase or preserve a debtor’s liquidity is crucial to analyzing its deleveraging options. Companies with significant labor liabilities need to explore whether attaining cost savings through rejection of their collective bargaining agreements (CBAs) is a viable alternative.  The decision from the United States Court of Appeals for the Third Circuit in 

Yesterday’s post discussed the recent appellate ruling in Sentinel’s bankruptcy, Grede v. Bank of New York Mellon Corp.

In this second installment of the Lookback Period – Six Weeks, we take brief holiday trips internationally, with two posts on eligibility for chapter 15 recognition and service of claim objections by U.S. mail to foreign claimants, and domestically to Delaware, with a series on Judge Sontchi’s decision on postpetition interest, as well as a post about a decision from the Court of Chancery of Delaware on the interpretation of indentures. 

Chapter 15 Eligibility

This is the third post in our series on Judge Sontchi’s postpetition interest decision in Energy Futures Holdings, issued on October 30, 2015. Our first post in this series analyzed Judge Sontchi’s ruling that postpetition interest on an unsecured claim does not constitute a part of the unsecured claim itself.